Coca-Cola India reported a 73% drop in its profit for FY25, marking one of its steepest declines in recent years. The fall comes amid rising input costs, marketing expenses, and sluggish consumer demand in both urban and rural markets.
According to the company’s filings, Coca-Cola India posted a net profit of ₹212 crore in FY25, compared to ₹785 crore in FY24. However, revenue grew 8% year-on-year to ₹4,980 crore, driven by strong sales of smaller pack sizes and regional beverage variants.
Industry experts say the company’s profit was impacted by higher sugar and packaging costs, as well as heavy spending on brand campaigns during the election and cricket seasons.
Despite the profit slump, Coca-Cola remains optimistic about long-term growth, focusing on affordable packs, new flavours, and rural distribution.
Summary Table
| Particulars | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | ₹4,980 crore | ₹4,610 crore | +8% |
| Net Profit | ₹212 crore | ₹785 crore | -73% |
| Operating Margin | 6.5% | 17% | -10.5% |
| Major Reason | Higher input & marketing costs | – | – |
| Outlook | Focus on affordability & innovation | – | – |
Company Statement
A Coca-Cola India spokesperson said,
“We are investing in innovation, expanding our rural reach, and ensuring affordability to stay competitive in a dynamic market environment.”
Analyst Take
Analysts believe the drop in profits reflects broader pressure on FMCG companies due to inflation and changing consumption trends. They expect recovery in FY26 as costs normalise and rural demand improves.
